Am I wrong to claim??

ramblingrose · 25 April 2018 at 11:35AM

Hi all,

Any information on this would be appreciated,
I took out a remortgage with Woolwich over the phone in 2007 and at the time was advised by the Woolwich mortgage advisor to take out a joint mppi which was taken with L&G, he took all our medical details over the phone, at the time I did have a pre existing illness for which I made the mortgage adviser aware of during the process.
Long story short, I had been paying this for 11yrs just until a few weeks ago until I was sorting all my affairs out and was reading through our mppi policy and seen NO WAIVER beside my name but WAIVER beside my husbands, unsure of what this meant I googled and it meant that if I was ill the policy would not have paid any of my payments but my husband would have been covered! I was gob smacked to say the least after paying for so many years unknown I wasn't covered for what I thought.
I understand if I died or was critical ill it would have paid out (well I think so?) but I already had separate policies that would have covered me for this so I had no need for this at all.
My question is, was a joint policy sold to me for no reason only to line the pockets of the Woolwich adviser? as I still have the paper work and they where paid commission on this sale!
I know I should have ask more questions what the waiver thing meant when I got the policy but I honestly hadn't taken it under my notice at the time.
Should I pursue a ppi claim or would I be wasting my time and put it down to me not reading the paper work correctly?
Many thanks

dunstonh · 25 April 2018 at 11:59AM

he took all our medical details over the phone,

Are you sure its MPPI and not life assurance, Critical illness cover or income protection? MPPI doesnt need medical details. Those others things do.

and was reading through our mppi policy and seen NO WAIVER beside my name but WAIVER beside my husbands, unsure of what this meant I googled and it meant that if I was ill the policy would not have paid any of my payments but my husband would have been covered!

PPi doesnt have waiver of premium available on it. So, again, this doesnt sound like PPI.

It is common for waiver to be excluded on pre-existing conditions wjere there is a higher risk of a claim.

I was gob smacked to say the least after paying for so many years unknown I wasn't covered for what I thought.

What do you think you are covered for as currently you seem to think this is an MPPI but what you have said indicates it isnt.

I understand if I died or was critical ill it would have paid out (well I think so?) but I already had separate policies that would have covered me for this so I had no need for this at all.

Right. So, you know its not MPPI. Best not to refer to it as MPPI then.
Are you sure you had enough cover?
Generally ballpark figures for being adequatly covered are upto 20x income PLUS the amount of any debts. Was yours more than this?

My question is, was a joint policy sold to me for no reason only to line the pockets of the Woolwich adviser? as I still have the paper work and they where paid commission on this sale!

Woolwhich staff were not paid commissions. Bancassurer sold policies showed a notional commission that was paid to the bank. Not the staff member.

Should I pursue a ppi claim or would I be wasting my time and put it down to me not reading the paper work correctly?

As its not PPI, it would be pointless making a PPI complaint. It would be one of the easiest rejections they would have all day.

it is normal to have life assurance and CIC to cover a mortgage. Most people do have one or both. So, nothing seems unusual in what has happened.

most people in the UK are woefully under insured on life/CIC. You seem to think you are over insured. Are you really sure about that?

ramblingrose · 25 April 2018 at 12:41PM

Thank you for your reply and will answer you as best as I can, I'm not very clued up on this as is why i'm on here asking questions.

Are you sure its MPPI and not life assurance, Critical illness cover or income protection? MPPI doesnt need medical details. Those others things do.

The policy I had was for Accident, sickness and involuntary unemployment protection which also covered terminal illness and life cover, which paid our mortgage payments whatever the outcome would be.
Is this mppi?

Right. So, you know its not MPPI. Best not to refer to it as MPPI then.
Are you sure you had enough cover?
Generally ballpark figures for being adequatly covered are upto 20x income PLUS the amount of any debts. Was yours more than this?

Yes I had enough insurance policies at the time to cover my mortgage in which I still have the paper work with the insurance policies I held at the time on it.
I did state I had a pre existing illness so have made sure over the years that my family will have no worries about money.

Woolwhich staff were not paid commissions. Bancassurer sold policies showed a notional commission that was paid to the bank. Not the staff member.

How much will this advice cost?
For arranging this plan L&G will pay commission to your financial adviser worth £455.45 immediately and then from month 49 £0.41 each month until the end of plan.

As its not PPI, it would be pointless making a PPI complaint. It would be one of the easiest rejections they would have all day.

it is normal to have life assurance and CIC to cover a mortgage. Most people do have one or both. So, nothing seems unusual in what has happened.

most people in the UK are woefully under insured on life/CIC. You seem to think you are over insured. Are you really sure about that?

Yes I am but thank you for the advice.

dunstonh · 25 April 2018 at 12:56PM

The policy I had was for Accident, sickness and involuntary unemployment protection which also covered terminal illness and life cover, which paid our mortgage payments whatever the outcome would be.
Is this mppi?

It sounds like a multi-segment plan (assuming you have all segments). Terminal illness and life cover (and waiver) are not MPPI. Unemployment would be MPPI.

Yes I had enough insurance policies at the time to cover my mortgage in which I still have the paper work with the insurance policies I held at the time on it.
I did state I had a pre existing illness so have made sure over the years that my family will have no worries about money.

You say you had enough to cover the mortgage. However, life assurance financial needs are typically around 20x income plus debts. So, did you have enough when using that calculation? (you would be rare if you did).

Woolwhich staff were not paid commissions. Bancassurer sold policies showed a notional commission that was paid to the bank. Not the staff member.

How much will this advice cost?
For arranging this plan L&G will pay commission to your financial adviser worth £455.45 immediately and then from month 49 £0.41 each month until the end of plan.

Yes. The money went to the bank. Not the individual. The individual was on a salary and bonus. It really doesnt matter though.

Yes I am but thank you for the advice.

I doubt you are as a) its statistically unlikely b) you seem to be focused only on mortgage and not income replacement (so things like death in service at work would not go against the mortgage) and c) if you were so adequatly insured, then why did you not say so in 2007.

Nearlyold · 25 April 2018 at 5:57PM

Long story short, I had been paying this for 11yrs just until a few weeks ago until I was sorting all my affairs out and was reading through our mppi policy and seen NO WAIVER beside my name but WAIVER beside my husbands, unsure of what this meant I googled and it meant that if I was ill the policy would not have paid any of my payments but my husband would have been covered! I was gob smacked to say the least after paying for so many years unknown I wasn't covered for what I thought.

Waiver is not PPI and wouldn't be attached to a PPI policy or PPI element of a multi segment policy - the logic being if you are off work ill the PPI policy (or element) will pay out anyway. If you are excluded from the Waiver benefit then you won't have been paying for it either.

It's possible you may be getting slightly confused between the various segments you might have. The policy terms and conditions will provide a full explanation of ALL the benefits that a Multi Segment policy can provide but you need to look at the policy schedule to see which benefits you actually have and are paying for.

ramblingrose · 25 April 2018 at 8:47PM

I doubt you are as a) its statistically unlikely b) you seem to be focused only on mortgage and not income replacement (so things like death in service at work would not go against the mortgage) and c) if you were so adequatly insured, then why did you not say so in 2007.[/QUOTE]

This is my whole point, I bought the policy fully aware that it covered my husband and I should EITHER of us be unable to work but had no idea that it was only covering my husband and not me.
This was the one cover I didn't have and was willing to pay for it even though it came with other cover I already had ie 3 other separate single life insurance policies, which I may add, one policy was enough to cover the mortgage if I died and the other 2 for my family.
I unlike most people in the UK you talk about not having enough life cover, I know how important life cover is and have made darn sure that my family will be debt free and have no money worries when i'm not here.
I DID tell the mortgage adviser of these policies and they are written in on my mortgage application.

dunstonh · 25 April 2018 at 8:52PM

This is my whole point, I bought the policy fully aware that it covered my husband and I should EITHER of us be unable to work but had no idea that it was only covering my husband and not me.

From what you said, its only the waiver that is not covering you. That is not a big loss. Plus, to be fair, they would have needed either your husband or yours permission to proceed with that amendment after underwriting. So, whilst you say you cant remember it now, it would have been given at the time.

This was the one cover I didn't have and was willing to pay for it even though it came with other cover I already had ie 3 other separate single life insurance policies, which I may add, one policy was enough to cover the mortgage if I died and the other 2 for my family.

Waiver is not something that most know even exists. Plus, waiver only existed for life assurance premiums and pension premiums. So, you cant have waiver without either of those.

haras_nosirrah · 25 April 2018 at 10:33PM

I think you are confused what waiver of premium is

Waiver of premium means it won't pay the insurance premium if you are off sick not that it won't pay the insurance at all

E.g if the premium is £20 a month for 150k life insurance it wouldn't pay the £20 If you were off sick so you would have to pay the monthly premium to maintain cover but it would still pay the 150k policy

Am I wrong to claim??

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